Altice draws nearly US$60bn of orders for jumbo bond

viernes 30 de enero de 2015 06:12 GYT

By Robert Smith

LONDON, Jan 30 (IFR) - Rampant demand for Altice's US$5.3bn-equivalent bond deal has pushed the gross order book close to US$60bn, according to a banker close to the deal.

While this is not as large as the whopping US$100bn of combined orders for Altice and Numericable's record breaking US$16.7bn-equivalent bond deal priced in April 2014, the oversubscription is much higher this time around as the deal is far smaller.

"It's an incredibly painful allocation process," said the banker.

The runaway demand for the deal, with orders from close to 400 accounts, is all the more impressive given how much pricing has tightened since it was announced last Friday.

Initial price whispers on Altice International's EUR500m 8NC3 senior secured notes were in the low 6% yield range. Official price talk on this tranche came out at just 5.375% area on Thursday, however.

The tight pricing has been achieved in part as Altice's outstanding bonds have rallied significantly since the new deal was launched, with some tranches bid more than 100bp tighter.

"You usually price a new deal relative to secondary, but in this case the new deal has repriced the outstanding bonds as we've gone on," said the banker.

"It's done nothing to dent demand though. The order book actually grew when we tightened pricing."   Continuación...